#NFPWatch The Non-Farm Payroll (NFP) report is a key American economic indicator released monthly (typically on the first Friday of the month). It measures the change in the number of jobs added or lost in the United States, excluding the agricultural sector, private household workers, government employees, and non-profit organizations.
Its Importance:
✅ Economic Health: It is a key measure of the strength of the American labor market, and thus the overall health of the economy.
✅ Impact on Monetary Policy: The Federal Reserve (the U.S. central bank) closely monitors it when making decisions about interest rates.
✅ Market Volatility: It leads to significant fluctuations in financial markets (dollar, stocks, bonds, gold) due to its importance and impact on economic forecasts.
What the report also includes:
◀️ Unemployment Rate.
◀️ Average Hourly Wages.
◀️ Revisions to previous months' figures.
Overall, positive numbers (increase in jobs) indicate a strong economy and support the U.S. dollar, while weak numbers suggest an economic slowdown and may lead to a weaker dollar 😎😎.